Why Was Google’s Eric Schmidt Demoted?

Eric Schmidt is one of my favorite CEOs, or at least former CEOs, in the world. It’s a tough position to manage, and usually one you have to sell your soul to get into. Schmidt seemed to remain moral, intelligent, and honest throughout this process. Still, while Eric Schmidt stepping down was presented as an expected, even positive thing, there have been plenty or rumors circulating about why this choice was made. While those died out after the April management shuffle, some of Schmidt’s comments in the D9 opening interview have sparked additional theories.

Clint Boulton over at Google Watch thinks that Schmidt was booted from his position of power because of his choices with Facebook. Everyone, including Eric Schmidt, believe that Eric Schmidt really messed up when it came to handling Facebook. To quote the man himself, “A CEO should take responsibility. I screwed up.” Certainly, Google’s current focus on social elements indicates that Page taking the reigns is driving the company back toward territory Schmidt failed to conquer.

But there are many other possibilities as well. It could be that Eric Schmidt was simply no longer necessary “adult supervision,” as he jokingly put it. With Page knowing the ropes and Schmidt having served a full decade, it may be that the interests of individuals involved just made this choice wise. Another theory is that Schmidt’s stance on China is what took him out of the driver’s seat. In the end, there’s no sure answer, and no one at Google is going to tell us. In any case, it’s clear that Schmidt will remain a vocal company representative and a loud voice for at least a few more years.